Western Areas bullish on nickel future

DESPITE an extremely volatile nickel price for the December half, Western Areas managed to return to profitability, and it sees better days ahead as all signs point to a more supportive nickel market with demand rising, in part due to the electric vehicle revolution.

Western Areas bullish on nickel future Western Areas bullish on nickel future Western Areas bullish on nickel future Western Areas bullish on nickel future Western Areas bullish on nickel future

The company said it has seen strong growth in its “value over volume” strategy, with revenue for the December half steady at A$115.8 million from the sales of 10,614t, which was positioning it to make several investment decisions to position it for growth in time for the early 2020s.

The average nickel price was $6.81/lb for the period versus cash costs of $2.49/lb, slightly higher because the company was mining lower grade ore, but the net profit after tax improved dramatically to $3.5 million thanks to a nickel price that was moving in the “right direction”, managing director Dan Lougher said this morning.

The spot price was last traded at about $7.80/lb.

While the price remains volatile, Lougher said it was trending in the right direction, and with rising demand ...